Conservative poll: Internet tax bill unpopular

A poll conducted for a pair of conservative groups finds most voters opposed to federal Internet sales tax legislation and suggests that lawmakers who vote for it could face attacks in the midterm elections.

The results of July surveys for the National Taxpayers Union and R Street, shared first with POLITICO, show that 57 percent of “likely” voters oppose changing the system for how states collect sales taxes from Internet purchases. One-third support it.

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Mercury, the public affairs firm that conducted the poll for the groups that oppose the Marketplace Fairness Act, found that majorities of suburban voters, women and independents oppose the measure. In a separate poll specifically of Republican voters, 66 percent opposed changing the system.

Supporters of the law, which would allow states to collect sales tax on purchases from out-of-state retailers that do not have physical locations in their jurisdiction, say the status quo is antiquated and unfairly hurts national retailers that have brick-and-mortar stores everywhere. Many Republican governors, looking to fill budget gaps, have pushed for the federal government to open the spigots to billions in potential revenue.

The two polls were conducted by Mercury. The first, from July 10-11, surveyed 1,000 likely voters nationally. The margin of error is plus or minus 3.1 percent. The second, conducted July 10-14, surveyed 700 likely GOP primary voters. The margin of error for the GOP-specific numbers is plus or minus 3.7 percent.

National Republican strategists said they hope to use the vote against Democratic senators up for reelection next year, including Mary Landrieu of Louisiana, Al Franken of Minnesota, Mark Pryor of Arkansas and Kay Hagan of North Carolina.

But the MFA has divided Republicans too: 21 Senate Republicans voted for it, and 22 opposed it. The groups timed the release of the poll to Congress’ return from its summer recess, concerned that proponents will maneuver to push it through this fall.

Liz Cheney’s advisers reportedly plan to try using Sen. Mike Enzi’s vote for the measure against him in next year’s Wyoming Republican primary. Other incumbents who voted for the legislation this spring and face possibly serious primary challenges next year are Sen. Lindsey Graham (R-S.C.) and Sen. Lamar Alexander (R-Tenn.).

In the Mercury poll, 71 percent of likely GOP primary voters said they would vote for the candidate who opposed “the creation of a new national sales tax collection mandate that applies to every retailer who sells goods and services over the Internet” over someone who supported it.

The new poll tested several other negative messages against the federal push with the full national sample, which could theoretically shape how they attack the law as the fight on the Hill heats up.

When the MFA is described as “a national sales tax collection mandate,” 69 percent said they are opposed — including 62 percent of Democrats.

When those polled were told that “the proposed legislation would allow tax enforcement agents from one state to collect taxes from online retailers based in a different state,” 70 percent opposed and 23 percent supported it.

Other lines that further dampened voter support for the measure: saying that the law would impose “costly new tax burdens on small online retailers” and “risk more interference” from authorities in other states.

Not surprisingly, those who make online purchases are more against Internet sales taxes than those who do not.